The People’s Bank of China highlights Hong Kong’s active crypto licensing as well as the importance of cryptocurrency as an emerging trend in several countries in its latest financial stability report.
In an excerpt from the 2024 Financial Stability Report, the Chinese central bank explains the progress of cryptocurrency compliance in Hong Kong. The report acknowledged that crypto has become a global trend that major countries are quickly accommodating through licenses and regulations.
“Currently, 51 countries and regions around the world have issued bans on crypto assets, and some economies have adjusted their original laws or reissued regulations,” the central bank wrote in a translated report.
The Financial Stability Report noted several important steps that the United States, Japan, Singapore, the United Kingdom and the European Union have taken to ensure that the crypto industry has clear policies and the rights of crypto traders are well protected by national laws.
Hong Kong is introducing a “dual licensing system” for trading platforms and virtual asset operators, dividing cryptocurrency into two categories: security tokens and non-security tokens. Security tokens must comply with the licensing standards listed in the Securities and Futures Commission regulatory framework, while non-security tokens must follow the Anti-Money Laundering Act.
Meanwhile, Hong Kong-based financial institutions that want to offer crypto-related services must apply for registration licenses from financial regulators. According to the report, major financial institutions such as Hongkong and Shanghai Banking…
